Stronger US dollar and an expected increase in US crude output have caused fall in global oil prices.
The recovery in dollar continued the rebound witnessed on 20 February after touching three-year lows last week amidst concerns that Washington might pursue a weak dollar strategy.
US West Texas Intermediate (WTI) crude futures reached $61.19 a barrel, which represents a decrease of 60 cents, or 1%, according to Reuters.
Brent crude futures traded at $64.77 per barrel, falling 48 cents, or 0.7%.
Stronger dollar affects fuel demand as it requires countries using other currencies to incur more expenditure for oil imports.
Futures brokerage OANDA Asia-Pacific trading head Stephen Innes was quoted by the news agency as saying: “The US dollar continues to find firmer footing.”
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Soaring US output also continues to affect crude prices, with production reaching more than ten million barrels per day (bpd).
Singapore-based Phillip Futures was quoted by the news agency, as saying in a note: “Bulging US production will weigh on prices.”
Traders are awaiting US oil production data to be released by the Energy Information Administration (EIA) on Thursday.
According to a poll conducted by the news agency, crude oil stockpiles are expected to record an increase of 1.3 million barrels in the week to 16 February.
However, oil prices continue to receive support from the OPEC and other producers including Russia through production cuts, which have been in place since January last year and are expected to last until the end of this year.